Searching on information about George Bougias will constantly point you to the idea that indeed he is an expert of the real estate market. Thus, there would be no reason why his ideas need to be considered if you want to succeed on real estate investing.
Let us have a review about who really George Bougias is.
George is on m3property research and consulting in Victoria and this is now for the period of 15 years. This experience is enough to tell why investors should also look into his published research findings, advisories and his brilliant analysis of the real estate market in different places all over Australia.
Why believe George Bougias?
With his broad experience, why not? He has been already exposed on various property market analyses tasks, and been working on property economics. Besides, he has also worked on the wide range of property asset and has in depth knowledge on residential and commercial estate market.
His wide knowledge and understanding on real estate has made him provide reliable knowledge on property markets and their dynamics.
The M3property Property Update
On the property update, based on the report of Property Council of Australia (PCA) for January 2014, Office Market Report:
- The national Central Business District (CBD) office vacancy rate rose from 10.1% to 10.4% over the period July 2013 to January 2014.
- The Melbourne CBD and Hobart CBD were the only markets to record a decline in the vacancy rate over the period (to 8.7% and 7.3% respectively).
- Melbourne and Hobart currently have the lowest vacancy rates of all CBD markets.
From the M3property website, the same report also says that:
- The CBD vacancy rate increased from 6.9% (July 2013) to 9.0% (January 2014) and is expected to increase.
- Over the same period the A grade vacancy rate increased from 6.3% to 10.2% while the Premium vacancy rate declined from 2.7% to 1.4%.
- Demand improved in the Sydney CBD over the second half of 2013 with Prime and Secondary stock equally contributing to the above average 33,289 square metres of net absorption recorded over the period.
- Vacancy remained fairly stable, however, due to the completion of the new Premium grade tower at 8-12 Chifley Square as well as a number of small refurbishments.
- There is a decrease in the vacancy rate from 9.8% to 8.7% over the period July 2013 to January 2014.
- Gross face rental growth over the next 12-18 months is expected to run below inflation.
- Incentives are expected to remain at elevated levels for much of 2014, before gradually declining, following an increase in demand due to an expected economic recovery in the medium-term.
- Vacancy rate recorded was 12.4% in January 2014 from 12.1 in July 2013.
- Vacancy in the Premium and A grade categories is also high which is expected to result in a tenant flight to quality.
- Building owners of secondary accommodation are expected to embark on refurbishment programs in order to both retain existing and attract new tenants.
- Brisbane’s vacancy rate increased from 12.8% to 14.2%, over the period July 2013 to January 2014
- The rate of net absorption was negative although slowing from the previous six month period to July 2013.
- The PCA is now following the Brisbane Airport submarket. The submarket has the lowest vacancy of all submarkets in Australia (5%) and has significant potential for growth and expansion.
- Demand has remained positive and reasonably strong in Canberra over the past two years, however, supply has been significantly stronger due to government requirements for four star plus NABERs rated buildings.
- Looking forward both demand and supply are set to moderate in 2014 due to cuts in public spending and the end of the current supply cycle.
What do these reports and figures as well as analyses of m3property are telling you?
These will serve as your bases when you opt to invest in any of the central business districts in Australia being mentioned on the report.
Usually, tenants will look into properties by considering various factors. As mentioned, refurbishment is needed in order to entice tenants and recent developments in areas may have contributed to increase of the vacancy rates.
It is about time to ask the experts of property investing. Those who are good at analyzing the market and in looking for best ways to renovate are what you are looking for.
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